[Code of Federal Regulations]
[Title 41, Volume 1]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
TITLE 41--PUBLIC CONTRACTS AND PROPERTY MANAGEMENT DEPARTMENT OF LABOR
PART 60 2_AFFIRMATIVE ACTION PROGRAMS--Table of Contents Subpart A_General
Sec. 60-2.1 Scope and application. Authority: E.O. 11246, 30 FR 12319, and E.O. 11375, 32 FR 14303, as amended by E.O. 12086, 43 FR 46501. Source: 65 FR 68042, Nov. 13, 2000, unless otherwise noted. .... (a) General. The requirements of this part apply to nonconstruction (supply and service) contractors. The regulations prescribe the contents of affirmative action programs, standards and procedures for evaluating the compliance of affirmative action programs implemented pursuant to this part, and related matters. (b) Who must develop affirmative action programs. (1) Each nonconstruction contractor must develop and maintain a written affirmative action program for each of its establishments if it has 50 or more employees and: (i) Has a contract of $50,000 or more; or (ii) Has Government bills of lading which in any 12-month period, total or can reasonably be expected to total $50,000 or more; or (iii) Serves as a depository of Government funds in any amount; or (iv) Is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount. (2) Each contractor and subcontractor must require each nonconstruction subcontractor to develop and maintain a written affirmative action program for each of its establishments if it has 50 or more employees and: (i) Has a subcontract of $50,000 or more; or (ii) Has Government bills of lading which in any 12-month period, total or can reasonably be expected to total $50,000 or more; or (iii) Serves as a depository of Government funds in any amount; or (iv) Is a financial institution which is an issuing and paying agent for U.S. savings bonds and savings notes in any amount. (c) When affirmative action programs must be developed. The affirmative action programs required under paragraph (b) of this section must be developed within 120 days from the commencement of a contract and must be updated annually. (d) Who is included in affirmative action programs. Contractors subject to the affirmative action program requirements must develop and maintain [[Page 112]] a written affirmative action program for each of their establishments. Each employee in the contractor's workforce must be included in an affirmative action program. Each employee must be included in the affirmative action program of the establishment at which he or she works, except that: (1) Employees who work at establishments other than that of the manager to whom they report, must be included in the affirmative action program of their manager. (2) Employees who work at an establishment where the contractor employs fewer than 50 employees, may be included under any of the following three options: In an affirmative action program which covers just that establishment; in the affirmative action program which covers the location of the personnel function which supports the establishment; or, in the affirmative action program which covers the location of the official to whom they report. (3) Employees for whom selection decisions are made at a higher level establishment within the organization must be included in the affirmative action program of the establishment where the selection decision is made. (4) If a contractor wishes to establish an affirmative action program other than by establishment, the contractor may reach agreement with OFCCP on the development and use of affirmative action programs based on functional or business units. The Deputy Assistant Secretary, or his or her designee, must approve such agreements. Agreements allowing the use of functional or business unit affirmative action programs cannot be construed to limit or restrict how the OFCCP structures its compliance evaluations. (e) How to identify employees included in affirmative action programs other than where they are located. If pursuant to paragraphs (d)(1) through (3) of this section employees are included in an affirmative action program for an establishment other than the one in which the employees are located, the organizational profile and job group analysis of the affirmative action program in which the employees are included must be annotated to identify the actual location of such employees. If the establishment at which the employees actually are located maintains an affirmative action program, the organizational profile and job group analysis of that program must be annotated to identify the program in which the employees are included. ... From the U.S. Government Printing Office via GPO Access [CITE: 41CFR60-2.10] [Page 113-114] Subpart B Purpose and Contents of Affirmative Action Programs Sec. 60-2.10 General purpose and contents of affirmative action programs. (a) Purpose. (1) An affirmative action program is a management tool designed to ensure equal employment opportunity. A central premise underlying affirmative action is that, absent discrimination, over time a contractor's workforce, generally, will reflect [[Page 114]]the gender, racial and ethnic profile of the labor pools from which the contractor recruits and selects. Affirmative action programs contain a diagnostic component which includes a number of quantitative analyses designed to evaluate the composition of the workforce of the contractor and compare it to the composition of the relevant labor pools. Affirmative action programs also include action-oriented programs. If women and minorities are not being employed at a rate to be expected given their availability in the relevant labor pool, the contractor's affirmative action program includes specific practical steps designed to address this underutilization. Effective affirmative action programs also include internal auditing and reporting systems as a means of measuring the contractor's progress toward achieving the workforce that would be expected in the absence of discrimination. (2) An affirmative action program also ensures equal employment opportunity by institutionalizing the contractor's commitment to equality in every aspect of the employment process. Therefore, as part of its affirmative action program, a contractor monitors and examines its employment decisions and compensation systems to evaluate the impact of those systems on women and minorities. (3) An affirmative action program is, thus, more than a paperwork exercise. An affirmative action program includes those policies, practices, and procedures that the contractor implements to ensure that all qualified applicants and employees are receiving an equal opportunity for recruitment, selection, advancement, and every other term and privilege associated with employment. Affirmative action, ideally, is a part of the way the contractor regularly conducts its business. OFCCP has found that when an affirmative action program is approached from this perspective, as a powerful management tool, there is a positive correlation between the presence of affirmative action and the absence of discrimination. (b) Contents of affirmative action programs. (1) An affirmative action program must include the following quantitative analyses: (i) Organizational profile--Sec. 60-2.11; (ii) Job group analysis--Sec. 60-2.12; (iii) Placement of incumbents in job groups--Sec. 60-2.13; (iv) Determining availability--Sec. 60-2.14; (v) Comparing incumbency to availability--Sec. 60-2.15; and (vi) Placement goals--Sec. 60-2.16. (2) In addition, an affirmative action program must include the following components specified in the Sec. 60-2.17 of this part: (i) Designation of responsibility for implementation; (ii) Identification of problem areas; (iii) Action-oriented programs; and (iv) Periodic internal audits. (c) Documentation. Contractors must maintain and make available to OFCCP documentation of their compliance with Sec. Sec. 60-2.11 through 60-2.17.